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Leverage Shares follows Tesla fee cut with cut on NIO ETP


Single stock and short and leveraged ETP issuer Leverage Shares has cut the management fees to zero on its -3x Short NIO ETP. This follows the decision to cut the fees on its -1x, -2x and -3x Short Tesla ETPs to zero on March 30 this year.

Single stock and short and leveraged ETP issuer Leverage Shares has cut the management fees to zero on its -3x Short NIO ETP. This follows the decision to cut the fees on its -1x, -2x and -3x Short Tesla ETPs to zero on March 30 this year.

The firm writes that this “fee holiday” will be maintained at least until 30 September 2022, with the possibility of extending it beyond this date.

China-based electric vehicle maker, NIO, has seen its share price drop by around three quarters from its high in 2021. NIO ADRs traded as high as USD53.20 at the end of June last year and by 17 May this year, closed at USD15.68. Meanwhile, Tesla has seen considerable movement in its share price, starting the year at around USD1,199 per share before nearing the USD766 mark in mid-March, before heading to USD1,145 in early April.

Raj Sheth, commercial director at Leverage Shares, says: “It’s great to be able to widen the range of our physically backed 0 per cent fee ETPs. This offers easier and cheaper access to investors who believe that electric vehicle firms are overhyped and overpriced. That’s the very ethos behind Leverage Shares – allowing investors to act on their own convictions as to the direction of well-known stocks via our extensive ETP range. We are also educating the public on how to use our short ETPs to hedge long term exposures, which in this case could be to electric vehicles.”

Leverage Shares writes that it is the only provider in Europe that offers physical replication of short and leveraged ETPs. Among its listings are Leverage Shares 3x short and long ARK Innovation ETPs; short, long, and delta one Coinbase ETPs, and many more.

Other popular ETPs include 3x leveraged ETPs on Microsoft (MSF3), Alphabet (GOO3), Meta (3FB), Netflix (NFL3) and 2x leveraged Berkshire Hathaway (BRK2), the firm says, as investor interest has recently been targeted towards leveraged versions of stocks hit hard during earnings season and by the big tech correction.

Leverage Shares ETPs mimic the daily return of an underlying asset multiplied by a leverage factor of +5x, +3x, +2x, -1x, -2x, 3x, and single-stock trackers. They provide leveraged and delta one (1:1) exposure to globally popular names including Tesla, Berkshire Hathaway, Amazon, Alibaba, Microsoft and Netflix, as well as FTSE100 equities, such as Vodafone.

The ETPs are also listed on the London Stock Exchange, Euronext Paris, Euronext Amsterdam, Borsa Italiana, and Frankfurt Stock Exchange. Investors can trade a stock in their own time zone and currency (USD, EUR and GBP) without paying high FX fees, even if the company is listed elsewhere.

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